Supply-side policies would solve inflation — without the bank-system damage

“…The alternative is an economy that meets or over-supplies goods and services. Such an economy is disinflationary because it drives competition and thereby lowers prices. Economists like to point out that such supply-side solutions are “time-consuming to implement.” They are. So too are the effects of rate hikes. As Congressional Research Service economists wrote recently, it can take “from 18 months to several years for the effects of Fed policy changes to feed through to inflation.”

Inflation-reducing, wealth-creating supply-side options are given short shrift for a simple reason. While the Fed controls interest rates, Congress controls the taxes and regulations that can limit supply-side expansion…”